Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Nuplex cuts earnings guidance a second time

Nuplex cuts earnings guidance a second time

By Jonathan Underhill

June 10 (BusinessDesk) - Nuplex Industries cut its full-year earnings guidance for a second time, saying competition across its Australia and New Zealand business has squeezed margins for both resins and specialty chemicals.

Earnings before interest, tax, depreciation and amortisation (ebitda) for the 12 months ending June 30 are now expected to be between $121 million and $125 million, compared with guidance issued four months ago for ebitda to fall within the lower end of a range of $130 million to $145 million.

The projection includes $2.4 million of net costs to reorganise its Australasian business and an estimated $2 million in foreign exchange losses.

Net profit would likely match 2013's result of $42.9 million, subject to accounting adjustments, the Auckland-based company said in a statement.

"As noted back in February, the outlook for Australia-New Zealand (ANZ) was challenging," said chief executive Emery Severin. "Since then, whilst volumes have been in line with internal forecasts, competitive pressures have impacted margins across the larger businesses."

The shares fell 4.8 percent to $3.20 and are down 1.2 percent this year. The stock is rated 'hold', based on the consensus of six analysts surveyed by Reuters.

The company's ANZ resins segment ebitda was expected to drop between 35 percent and 40 percent this year, while the ANZ specialties segment would record a decline of 45 percent to 50 percent, "primarily reflecting margin pressure in both segments," the company said.

The results would include a negative foreign exchange impact of about $2 million, reflecting a stronger kiwi dollar over the past five months, and accounting adjustments for re-organising the ANZ business of $2.1 million, it said.

Trading in Europe had exceeded the company's expectations and as a result, ebitda for Europe, Middle East and Africa is expected to rise between 15 percent and 20 percent in local currency terms. Asia had met expectations and will lift earnings between 10 percent and 15 percent, it said.

In the Americas, ebitda would be flat on a year earlier in local currency terms, reflecting a recent loss of tolling volumes, Nuplex said.

The company expects to hold its 2014 dividend payment in line with payments for 2013, it said.

Nuplex will release its full-year results on August 14.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news